Average limits purchased by companies with revenues exceeding USD1 billion rose 10 percent in 2013 to USD28.2 million from USD25.7 million in 2012. For companies of this size, financial institutions purchased the highest average limits at USD53.2 million, which represented a 9 percent increase from 2012. These average limits do not reflect the limits purchased by companies that blend cyber with the limits they purchase for errors and omissions (E&O) or bond. Since December 2013, there has been a stronger desire to obtain much higher limits than those purchased earlier in 2013. That trend is expected to continue.
The average limits purchased for cyber risk rose to USD11.5 million for all industries and all company sizes in 2013, representing a slight increase over the average of USD11.3 million in 2012.
Across major cyber risk-impacted industries, the communications, media and technology sectors continued to purchase the highest limits, with USD23.9 million in 2013. That represented an increase from USD21.7 million in 2012.
During 2013, cyber liability renewal rates - as measured by average and median annual changes in the year-over-year price per million of limits - remained generally stable for both primary layers and total programs. Average increases were typically small, ranging between 2 percent and 3 percent compared to pricing in the prior year.